IDEAS home Printed from https://ideas.repec.org/a/rai/mamere/doi_10.1688-1861-9908_mrev_2007_04_yu.html
   My bibliography  Save this article

MNCs’ HRM Strategy and Country of Origin Effect: Do North American, European and Japanese Firms Really Differ?

Author

Listed:
  • Gyu-Chang Yu

    (Hanyang University, School of Business)

  • Woo-Sung Park

    (Kyunghee University)

  • Yung-Ho Cho

    (Ajou University)

Abstract

Based upon the sample of 419 MNCs’ subsidiaries in Korea, we examined the country of origin effect in the choice of MNCs’ HRM strategy: transplantation, localization, and mixed. A multinominal logit regression analysis showed that there is an important country of origin effect in the choice between a localization strategy and a mixed strategy. North American MNCS tended to implement mixed strategy, while Japanese MNCs tended to adopt localization strategy. European MNCs were in the middle. The estimated log odds of choosing a localization strategy over a mixed strategy by Japanese subsidiaries were 1.79 times higher than European subsidiaries and 2.85 times higher than N. American subsidiaries; those by European subsidiaries were 1.59 times higher than N. American subsidiaries. However, the country of origin was not significantly related to the choice between a transplantation strategy and other strategies. We also examined two alternative factors influencing the HRM strategy of foreign subsidiaries: investment strategy and entry strategy. The implications of this and directions for future research are discussed.

Suggested Citation

  • Gyu-Chang Yu & Woo-Sung Park & Yung-Ho Cho, 2007. "MNCs’ HRM Strategy and Country of Origin Effect: Do North American, European and Japanese Firms Really Differ?," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 18(4), pages 392-409.
    • Handle: RePEc:rai:mamere:doi_10.1688/1861-9908_mrev_2007_04_yu
    as

    Download full text from publisher

    File URL: http://www.hampp-verlag.de/hampp_e-journals_mrev.htm#407
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dash, Rupanwita & Ranjan, Kumar Rakesh, 2019. "An Effectual–Causal View of Managerial Decisions in the Internationalization of Indian MNEs," Journal of International Management, Elsevier, vol. 25(1), pages 101-120.
    2. Anthony Ferner & Jacques Bélanger & Olga Tregaskis & Michael Morley & Javier Quintanilla, 2013. "U.S. Multinationals and the Control of Subsidiary Employment Policies," ILR Review, Cornell University, ILR School, vol. 66(3), pages 645-669, May.
    3. Cerar, Jelena & Dimitrova, Mihaela & Nell, Phillip C., 2022. "Fostering operational management “Best Practices” in subsidiary plants in the Western Balkans: The role of MNC home-country environment and resource allocation," Journal of International Management, Elsevier, vol. 28(2).

    More about this item

    Keywords

    Country of Origin; HRM Strategy; Localization; MNCs; South Korea;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rai:mamere:doi_10.1688/1861-9908_mrev_2007_04_yu. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rainer Hampp (email available below). General contact details of provider: http://www.hampp-verlag.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.